According to a Chinese local media outlet on 9th December 2019 the country’s nationwide blockchain consortium is set to be strengthened by China’s first-ever digital bank, WeBank, owned by multinational conglomerate Tencent that also owns subsidiaries specializing in telecom, technology, entertainment and fintech.
Earlier this year, China launched a grand-scale blockchain service network (BSN) to aid the growth and development of the digital economy and smart cities. With an aim to significantly reduce the costs related to maintenance, administration, and interoperability in blockchain, the network is expected to incentivize rapid development in the space and enable individuals and SMEs to establish their own blockchain-related businesses at a much lesser cost.
Tencent’s WeBank to bolster China’s blockchain consortium
Yes, China is moving full speed ahead at building a robust blockchain network. In its attempt, the Shenzhen-based organization, Tencent Holdings, has offered to provide the extensive technical infrastructure. The agreement states that the BSN will implement WeBank’s open-source blockchain application, FISCO BCOS. WeBank will also offer exclusive technical support along with training BSN developers with requisite skills.
The company report stated that China is working on building a blockchain consortium that has industry-wide applications in the public and private sectors. In doing so, it faces few challenges concerning high functioning costs of blockchain, diversity in base technology, and data interoperability. Thus, instead of building a single blockchain, a consortium of blockchain applications to serve the general public will be more beneficial.
Meanwhile, China’s blockchain consortium includes several industry giants, including likes of Huobi China, China Mobile, China Telecom, and UnionPay. The project has already made its way in twenty-five Chinese cities along with Singapore and Hong Kong. By 2020, it aims to test its network in over two hundred cities.
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